What is an income statement waterfall?

An income statement waterfall is a bar chart that walks from total revenue down to net income, with each step showing how much a cost or tax line removes (or adds). Subtotals — gross profit, operating income, pre-tax income — are anchored to zero so the cascade reconciles exactly to the bottom line.

How much of Commerce Bancshares (CBSH) revenue becomes net income?

For TTM through Q2 2026, Commerce Bancshares turned $2.17B of revenue into $584M of net income — a net margin of 26.9%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Commerce Bancshares (CBSH) gross, operating, and net margins?

For TTM through Q2 2026, Commerce Bancshares reported a gross margin of 80.2%, an operating margin of 35%, and a net margin of 26.9%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Commerce Bancshares (CBSH) have such a high (or low) gross margin?

Gross margin (gross profit ÷ revenue) reflects how much of each revenue dollar remains after direct production costs. Capital-light software and platform businesses often show gross margins above 60–80% because their cost of revenue is mainly hosting and support. Hardware, retail, and commodity businesses show lower gross margins because raw materials and manufacturing costs are significant. The waterfall makes this visible at a glance — the size of the "Cost of Revenue" bar relative to Revenue is the gross margin complement.

What is the difference between gross, operating, and net margin?

Gross margin = (Revenue − Cost of Revenue) ÷ Revenue. It measures production efficiency. Operating margin = Operating Income ÷ Revenue. It adds operating expenses (R&D, S&M, G&A) and measures the profitability of core operations. Net margin = Net Income ÷ Revenue. It also includes interest, other income/expense, and taxes, and represents the shareholder take after everything.

Commerce Bancshares (CBSH) Income Statement Waterfall

Revenue

$2.17B

Gross Margin

+80.2%

Operating Margin

+35.0%

Net Margin

+26.9%

Income statement waterfall for Commerce Bancshares (CBSH) — TTM through Q2 2026

Net income: $584M

Margin breakdown for Commerce Bancshares (CBSH) — TTM through Q2 2026

Line item	Amount	Running total
Revenue	$2.17B	$2.17B
Cost of Revenue	-$429M	$1.74B
Gross Profit	$1.74B	$1.74B
Operating Expenses	-$981M	$759M
Operating Income	$759M	$759M
Pre-tax Income	$759M	$759M
Income Tax	-$169M	$590M
Other Items	-$6.87M	$584M
Net Income	$584M	$584M

Revenue$2.17B
Cost of Revenue-$429M
Gross Profit$1.74B
Operating Expenses-$981M
Operating Income$759M
Pre-tax Income$759M
Income Tax-$169M
Other Items-$6.87M
Net Income$584M

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